Just a few short years ago, Nintendo seemed to be falling far behind its competitors in the console market. With three straight years of operating losses and historically low Wii U sales, Nintendo’s sales, profits, and shares were all in the gutter. Thanks to the astronomical success of Nintendo Switch and Nintendo’s continued efforts in the mobile space, things are looking a lot brighter for Nintendo these days.
According to research from IHS Markit, the total amount of money spent on Nintendo hardware, software, and services in 2016 was around $4 billion. In 2017, aided by the launch of Nintendo Switch, that amount doubled to $8 billion. IHS expects this upward trend to continue into 2018, with Nintendo projected to generated between $11 billion and $12 billion.
Meanwhile, Microsoft is trending in the opposite direction. IHS puts total revenue from Microsoft hardware, software, and services in 2017 at around $10 billion. That figure is a small decline from 2016’s numbers, but IHS projects that revenue will slide down to just over $9 billion in 2018. If these projections are correct, Nintendo will pass Microsoft for the second-largest market share this year.
Sony continues unchallenged at the top, generating well over $20 billion in 2017 after falling just short of that figure in 2016. They are expected to continue producing similar results in 2018, likely generating as much as the other two companies combined.
Source: Games Industry